FAAC calls for review of laws, price regime in gas sector

Posted by News Express | 1 August 2015 | 2,926 times

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The Federation Accounts Allocation Committee (FAAC) has called for review of laws, fiscal and price regimes and licenses of gas production in the country.

This call is contained in a communiqué issued by FAAC after a two-day National Seminar on The Role of Gas in Nigeria’s Economy, in Benin on Friday.

The communiqué identified low domestic utilization of gas, low level of industrialization and inadequacy of gas transmission and distribution infrastructure as some of the many challenges faced by the sector.

It said quick passage of the Petroleum Industry Bill (PIB) would fast track the holistic implementation of the Gas Master Plan.

The communiqué said government must strive to create a balance between export of gas and the usage in the domestic market by encouraging local gas consumption as a stimulus for development of the economy.

It called on government to expedite the power transmission project to enable the power plants to evacuate the power so that stranded gas could be utilized.

According to the communiqué, government needs to deliver the required infrastructure to link offshore gas to existing/planned facility.

It added that synergy between operators need to be driven by the regulators to deliver stranded gas.

It explained that the objective of the seminar was to sensitize stakeholders in the gas sector on the need to diversify the economy.

“This could be done by vigorously pursuing policies and programmes that could harness the country’s vast gas reserves.” (NAN)

Photo shows Buhari


Source: News Express

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